BUSINESS + ECONOMY

Utah leaders react to Silicon Valley Bank collapse

Mar 13, 2023, 7:09 AM | Updated: Sep 11, 2023, 11:12 am

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(FILE PHOTO: Chip Somodevilla/Getty Images)

(FILE PHOTO: Chip Somodevilla/Getty Images)

SALT LAKE CITY– Utah leaders are speaking out in the wake of the Silicon Valley Bank collapse.

Both Sen. Mitt Romney and Gov. Spencer Cox have voiced concerns.

“Hundreds of businesses were impacted…and it could have been devastating to our state,” Cox said during the Silicon Slopes Town Hall on Monday. “If the feds didn’t step up, the state would have,” Cox added.

Cox said this collapse could trigger layoffs and that the government needs to step in for the sake of people and businesses who trusted the bank with their money. 

During the Silicon Slopes Town Hall, Romney said he’s confident that things will stabilize, but he doesn’t know when.

Romney spoke about the need for the federal government to step in after the collapse.

” I just don’t think we need to worry about the stability of our banking system…(or) the companies and individuals who have their deposits in federally-regulated banks,” Romney said.

Romney said fear of collapse leads people to move their money to a few large banks in New York City which would harm the livelihood of smaller regional banks and stifle the creation of new businesses.

Romney went on, “Depositors believed that federal regulations and regulators had taken steps that would protect banks from failing. SVB is proof that the regulations or the regulators failed.”

 

Sunday evening, the Treasury, Federal Reserve, and FDIC released a joint statement that said, “taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system.”

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Utah leaders react to Silicon Valley Bank collapse